任子行(300311) - 2020 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2020 was ¥877,989,175.90, a decrease of 11.87% compared to ¥996,255,799.76 in 2019[17] - The net profit attributable to shareholders in 2020 was ¥17,080,549.53, a significant increase of 116.87% from a loss of ¥101,246,695.46 in 2019[17] - The net cash flow from operating activities reached ¥191,401,515.93, representing a remarkable increase of 5,297.34% compared to ¥3,546,219.71 in 2019[17] - The total assets at the end of 2020 amounted to ¥1,675,238,726.47, reflecting a growth of 3.91% from ¥1,612,229,072.76 at the end of 2019[17] - The net assets attributable to shareholders increased by 2.09% to ¥903,049,435.39 at the end of 2020, up from ¥884,540,139.70 in 2019[17] - The basic earnings per share for 2020 was ¥0.0254, a turnaround from a loss of ¥0.1489 in 2019, marking a 117.06% improvement[17] - The weighted average return on net assets was 1.91% in 2020, a significant recovery from -26.61% in 2019[17] - The company reported a decrease in net profit after deducting non-recurring gains and losses, amounting to -¥16,804,713.22 in 2020, an improvement of 93.18% from -¥246,167,287.23 in 2019[17] - Total revenue for 2020 was ¥877,989,175.90, a decrease of 11.87% compared to ¥996,255,799.76 in 2019[65] - Revenue from the cybersecurity segment was ¥389,386,080.65, accounting for 44.35% of total revenue, down 1.67% from the previous year[65] - Revenue from asset management was ¥330,995,259.98, representing 37.70% of total revenue, an increase of 1.31% year-over-year[65] - Revenue from cultural entertainment dropped significantly by 42.65% to ¥153,825,138.68, which accounted for 17.52% of total revenue[65] - Export revenue fell by 51.17% to ¥45,879,729.41, constituting 5.22% of total revenue[65] Market and Business Operations - The company’s main business is focused on the development, publishing, and operation of online games, with a significant emphasis on casual games such as card and mahjong games[35] - The network security business is based on independent innovation, providing comprehensive solutions through self-research and integration, with four major R&D bases established in Shenzhen, Beijing, Wuhan, and Chengdu[36] - The company has developed a range of cybersecurity products, including zero-trust security and cloud security solutions, targeting various sectors such as government and finance[29] - The company is focusing on expanding its market presence through comprehensive solutions in public safety and emergency response, leveraging big data and AI technologies[28] - The company has established a market sales and service system covering various regions, with over 30 branches nationwide to ensure timely customer support[43] - The company is recognized as a key software enterprise and has received multiple certifications and honors, enhancing its competitive edge in the network security field[45] - The company aims to enhance its data governance and security solutions, particularly in the context of 5G and IoT security management[34] - The network security industry in China maintained growth throughout 2020, driven by the implementation of new policies and regulations[39] - The company operates in a favorable policy environment due to the increasing government and enterprise focus on information security and data protection[60] - The number of regulatory policies and guidelines relevant to the network security industry has been increasing, providing a solid foundation for market growth[58] Risks and Challenges - The company has acknowledged potential risks including technology updates, seasonal sales fluctuations, and core talent loss, which are detailed in the report[5] - The company faces risks related to rapid technology updates, seasonal sales fluctuations, and potential core talent loss due to competition in the cybersecurity industry[114][115][116] - The company has ongoing litigation regarding the performance commitments of its subsidiaries, with uncertain impacts on current and future profits[120][121] - The company has faced risks related to the gaming industry, including competition, market demand misalignment, and regulatory tightening[119] Investments and Subsidiaries - In May 2020, the company established a wholly-owned subsidiary with a registered capital of CNY 10 million, and later increased its investment to CNY 22 million, holding 55% of the subsidiary[52] - The company transferred 8.70% equity of Yun'anbao for CNY 20 million, resulting in an investment gain of CNY 14.71 million, positively impacting operational funds[53] - The company established a new subsidiary, Shenzhen Hongbo Data Technology Co., Ltd., with a 55% ownership stake during the reporting period[80] - The company has agreed to invest RMB 1,000 million in a venture capital fund, representing a 4% stake in the partnership[159] Compliance and Governance - The company reported no significant discrepancies between financial reports under international and Chinese accounting standards[20][21] - The company is required to comply with the Shenzhen Stock Exchange's disclosure requirements for software and information technology services[65] - The company confirmed compliance with the Shenzhen Stock Exchange's disclosure requirements for network security-related businesses[74] - The company has established principles for related party transactions to ensure fairness and compliance with legal regulations[134] - The company has committed to avoid non-operating fund occupation and has established a governance structure to ensure compliance[137] - The company has implemented measures to ensure that major shareholders adhere to regulations regarding related party transactions and external guarantees[137] Shareholder and Dividend Policies - The company plans not to distribute cash dividends or issue bonus shares for the year[6] - The company did not distribute cash dividends for the fiscal year 2019, and the cumulative distributable profits were negative as of the end of 2019[127] - The company has not proposed any cash dividend distribution for the fiscal year 2020, despite having positive profits available for distribution[130] - The company’s cash dividend policy and distribution plan have been executed in accordance with its articles of association and relevant regulations[129] Legal Matters - The company is involved in a lawsuit with a claimed amount of RMB 13,456.08 million, awaiting judgment, which may impact future profits[149] - Another lawsuit involves a claimed amount of RMB 18,310.57 million, with a first-instance judgment requiring payment of RMB 1.5 million in penalties[149] - The company has a total of 59 legal cases, with 3 cases settled through mediation, and one case in mediation involving a payment of RMB 42,511.69 million[150] Research and Development - Research and development expenses for 2020 were CNY 178,286,257.02, a decrease of 9.74% from CNY 197,515,252.71 in 2019, representing 20.31% of total revenue[86] - The company has established a mobile internet security governance platform, addressing regulatory compliance and safety in mobile applications[33] - The company has received government subsidies amounting to CNY 20,162,483.21, which are closely related to its business operations[23] Awards and Recognition - In March 2020, the company won the Guangdong Province Science and Technology Progress Award for its mobile internet application auditing platform, showcasing its technological advancements[45] - The company received multiple awards in 2020, including recognition as an "Outstanding Enterprise" and "Best Cooperation Unit" at the Hubei Information Network Security Industry Analysis Conference[54]